Shane Moynihan (Dublin Mid West, Fianna Fail)
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161. To ask the Minister for Children, Disability and Equality if she has considered the impact of the automatic enrolment retirement savings system on childcare providers as an additional cost; if there is guidance available for providers on this; and if she will make a statement on the matter. [52341/25]

Norma Foley (Kerry, Fianna Fail)
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Among other objectives, Core Funding supports the ability of service providers to meet the additional costs resulting from the EROs for Early Years Services, as it provides increases in funding to early learning and childcare service providers to support improvements in staff wages, alongside a commitment to freeze or reduce parental fees.

The base rates in Core Funding have been developed using the various components associated with the cost of delivery of service provision such as; staff pay and conditions, including contact and non-contact time, holiday pay, sick pay and other employer costs such as pension contributions; administrative staff/time and non-staff overhead costs. These components have been factored into the calculation of the budget for Core Funding since the scheme began in 2022.

Data available to the Department shows that the 2022 and 2024 Employment Regulation Orders did not absorb all of the available Core Funding signalled for staff pay and graduate leaders in previous years.

Core Funding has seen consistent increased State investment to the sector year on year, and is set in year 4 to be worth over €390 million contingent on the establishment of new minimum rates of pay in the sector through updated Employment Regulation Orders. This is an increase of over 50% since the scheme began in September 2022 with an allocation of €259 million.

This allocation includes the €45 million ring-fenced funding which is available to support providers in meeting increased costs resulting from further increases to the minimum rates of pay. The independent Joint Labour Committee negotiate new minimum rates of pay for the sector based on all the information available to them, including the full suite of existing and new funding available to the sector and the imminent introduction of auto-enrolment pensions. This measure was signed into law in 2024, in October 2024 it was announced that it would take effect in September 2025. It was announced in April of this year that this measure will now take effect in January 2026.

Although, the cost of delivery components such as improvements to staff pay have been used to derive the base rates the eligible areas of expenditure of the Core Funding grant are much broader. Partner Services can choose how to spend their Core Funding grant in accordance with the approved areas of expenditure outlines in the Funding Agreement.

The Department of Social Protection is responsible for the introduction of the auto-enrolment scheme and a range of resources for employers and employees are available.

The Department for Children, Disability and Equality is planning a bespoke online information session, in conjunction with the Department of Social Protection, on auto-enrolment for ELC and SAC service providers.  Further information on that session will be shared with service providers as soon as they are confirmed.

Claire Kerrane (Roscommon-Galway, Sinn Fein)
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162. To ask the Minister for Children, Disability and Equality if consideration has been given to the impact on community and private childcare providers of the introduction of auto-enrolment and the significant added cost this will place on providers; if she plans to take any action on this; and if she will make a statement on the matter. [52369/25]

Norma Foley (Kerry, Fianna Fail)
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Among other objectives, Core Funding supports the ability of service providers to meet the additional costs resulting from the EROs for Early Years Services, as it provides increases in funding to early learning and childcare service providers to support improvements in staff wages, alongside a commitment to freeze or reduce parental fees.

The base rates in Core Funding have been developed using the various components associated with the cost of delivery of service provision such as; staff pay and conditions, including contact and non-contact time, holiday pay, sick pay and other employer costs such as pension contributions; administrative staff/time and non-staff overhead costs. These components have been factored into the calculation of the budget for Core Funding since the scheme began in 2022.

Data available to the Department shows that the 2022 and 2024 Employment Regulation Orders did not absorb all of the available Core Funding signalled for staff pay and graduate leaders in previous years.

Core Funding has seen consistent increased State investment to the sector year on year, and is set in year 4 to be worth over €390 million contingent on the establishment of new minimum rates of pay in the sector through updated Employment Regulation Orders. This is an increase of over 50% since the scheme began in September 2022 with an allocation of €259 million.

This allocation includes the €45 million ring-fenced funding which is available to support providers in meeting increased costs resulting from further increases to the minimum rates of pay. The independent Joint Labour Committee negotiate new minimum rates of pay for the sector based on all the information available to them, including the full suite of existing and new funding available to the sector and the imminent introduction of auto-enrolment pensions. This measure was signed into law in 2024, in October 2024 it was announced that it would take effect in September 2025. It was announced in April of this year that this measure will now take effect in January 2026.

Although, the cost of delivery components such as improvements to staff pay have been used to derive the base rates the eligible areas of expenditure of the Core Funding grant are much broader. Partner Services can choose how to spend their Core Funding grant in accordance with the approved areas of expenditure outlines in the Funding Agreement.

The Department of Social Protection is responsible for the introduction of the auto-enrolment scheme and a range of resources for employers and employees are available.

The Department for Children, Disability and Equality is planning a bespoke online information session, in conjunction with the Department of Social Protection, on auto-enrolment for ELC and SAC service providers.  Further information on that session will be shared with service providers as soon as they are confirmed. 

Michael Healy-Rae (Kerry, Independent)
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163. To ask the Minister for Children, Disability and Equality the measures which will be taken to ensure pay parity for those providing childcare (details supplied); and if she will make a statement on the matter. [52458/25]

Norma Foley (Kerry, Fianna Fail)
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Pay is one of a number of issues impacting the early learning and care and school-age childcare workforce. The level of pay for early years educators and school-age childcare practitioners does not reflect the value of their work for children, families, society and the economy.

It is my intention to deliver on the Programme for Government commitment to ‘continue to implement Employment Regulation Orders to attract and retain early years educators.’

As the State is not the employer of staff in the sector, neither I nor the Department can set wage levels or determine working conditions for staff in the sector.

The Joint Labour Committee is the formal mechanism established by which employer and employee representatives can negotiate minimum pay rates, which are set down in Employment Regulation Orders.

I acknowledge the Joint Labour Committee is independent in its functions, and I do not have a role in its statutory negotiation processes. However, outcomes from the Joint Labour Committee process are supported by Government through Core Funding, which in the programme year 2025/26 will increase by 6% to €350 million. An additional €45 million has been ringfenced to support employers to meet the costs of further increases to the minimum rates of pay and is contingent on updated Employment Regulation Orders.

Through the Joint Labour Committee process, Employment Regulation Orders have been signed into law in September 2022 and June 2024 to progressively increase average wage rates in the sector for staff at different grades by approximately 13%.

I have been informed that the Joint Labour Committee has, after public consultation, unanimously agreed on proposed new minimum rates of pay for the sector and has submitted these proposals to the Labour Court. If adopted by the Labour Court, these proposals will be laid before the Minister of State for the Department of Enterprise, Tourism and Employment for consideration, as provided for under the Industrial Relations Act 1946.

If adopted and established as Employment Regulation Orders, these proposals are another welcome step in the process of improving pay in the sector and may see minimum hourly rates of pay for graduate lead educators increase to €17.50.

The improvement of pay and conditions is a key enabler for the implementation of ‘Nurturing Skills: The Workforce Plan for Early Learning and Care and School-Age Childcare 2022 – 2028’, which sets out a strategic framework for professional development, career progression, and workforce sustainability for the sector.